INVESTMENTS IN EQUITY INVESTEES (Tables)

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Summary of investments in and advances to equity investees and our ownership percentage

Investments and advances related to equity method investees and our ownership percentages were as follows:

	Ownership	December 31,
Dollars in millions	percentage	2021		2020
Komatsu alliances	20-50%	$	275	$	309
Beijing Foton Cummins Engine Co., Ltd.	50%	255		255
Dongfeng Cummins Engine Company, Ltd.	50%	148		134
Chongqing Cummins Engine Company, Ltd.	50%	144		125
Cummins-Scania XPI Manufacturing, LLC	50%	125		99
Tata Cummins, Ltd.	50%	88		78
Other	Various	503		441
Investments and advances related to equity method investees		$	1,538	$	1,441

Equity, royalty and interest income from investees

Equity, royalty and interest income from investees, net of applicable taxes, was as follows:

	Years ended December 31,
In millions	2021		2020			2019
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd.	$	112	$	113		$	60
Dongfeng Cummins Engine Company, Ltd.	82		63			52
Chongqing Cummins Engine Company, Ltd.	39		35			41
All other manufacturers	149		134		(1)(2)	88
Distribution entities
Komatsu Cummins Chile, Ltda.	32		31			28
All other distributors	10		2			2
Cummins share of net income	424		378			271
Royalty and interest income	82		74			59
Equity, royalty and interest income from investees	$	506	$	452		$	330
(1) Includes $37 million in favorable adjustments related to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March 2020. See NOTE 4, "INCOME TAXES" for additional information on India Tax Law Change.
(2) Includes impairment charges of $13 million and loss on sale of business of $8 million for a joint venture in the Power Systems segment.

Summary of financial information for equity investees

Summary financial information for our equity investees was as follows:

	Years ended and at December 31,
In millions	2021		2020		2019
Net sales	$	8,934	$	7,794	$	7,068
Gross margin	1,574		1,418		1,274
Net income	802		696		566
Cummins share of net income	$	424	$	378	$	271
Royalty and interest income	82		74		59
Total equity, royalty and interest from investees	$	506	$	452	$	330
Current assets	$	4,587	$	4,264
Long-term assets	1,850		1,673
Current liabilities	(3,573)		(3,347)
Long-term liabilities	(288)		(251)
Net assets	$	2,576	$	2,339
Cummins share of net assets	$	1,490	$	1,361